The document summarizes the major historical approaches to management from ancient times through the modern era. It discusses ancient management practices, the contributions of Adam Smith and the Industrial Revolution, and the classical approaches of scientific management developed by Frederick Taylor and Henri Fayol's principles of management. It also examines the quantitative approach developed during WWII, behavioral science and the Hawthorne Studies, systems theory, and contingency theory. The document is from a management textbook outlining the evolution of management thought over time.

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2–1
Management HistoryManagement History
Management
Stephen P. Robbins Mary Coulter
tenth edition

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Learning OutcomesLearning Outcomes
Follow this Learning Outline as you read and studyFollow this Learning Outline as you read and study
this chapter.this chapter.
2.1 Historical Background Of Management.
2.2 Classical Approach.Classical Approach.
2.3 Quantitative Approach.
2.4 Behavioral Approach
2.5 Contingency/Contemporary Approach

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Historical Background ofHistorical Background of
ManagementManagement
• Ancient ManagementAncient Management
 Egypt (pyramids) and China (Great Wall)Egypt (pyramids) and China (Great Wall)
 Venetians (floating warship assembly lines)Venetians (floating warship assembly lines)
• Adam SmithAdam Smith
 PublishedPublished The Wealth of NationsThe Wealth of Nations in 1776in 1776
• Industrial RevolutionIndustrial Revolution

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Exhibit 2–1 Major Approaches to ManagementExhibit 2–1 Major Approaches to Management

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Scientific ManagementScientific Management
• Fredrick Winslow TaylorFredrick Winslow Taylor
 The “father” of scientific managementThe “father” of scientific management
 PublishedPublished Principles of Scientific ManagementPrinciples of Scientific Management (1911)(1911)
Says “Management is a science. There is one
best way and one best person to do the task. I
love efficiency and I love to study people at
work. Management should be an academic
discipline.” (He had a point…)
His work influenced:
Bringing psychology into the workplace
Gantt Chart and planning
Harvard University Offering Management
Degree

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Exhibit 2–2 Taylor’s Scientific Management PrinciplesExhibit 2–2 Taylor’s Scientific Management Principles
1. Develop a science for each element of an individual’s work, which
will replace the old rule-of-thumb method.
2. Scientifically select and then train, teach, and develop the worker.
3. Heartily cooperate with the workers so as to ensure that all work
is done in accordance with the principles of the science that has
been developed.
4. Divide work and responsibility almost equally between
management and workers. Management takes over all work for
which it is better fitted than the workers.

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General Administrative TheoryGeneral Administrative Theory
• Henri FayolHenri Fayol
 Principles of ManagementPrinciples of Management
• Max WeberMax Weber
 Developed a theory of authority based on an idealDeveloped a theory of authority based on an ideal
type of organization (bureaucracy)type of organization (bureaucracy)
 Emphasized rationality, predictability, impersonality, technicalEmphasized rationality, predictability, impersonality, technical
competence, and authoritarianismcompetence, and authoritarianism

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Exhibit 2–3 Fayol’s 14 Principles ofExhibit 2–3 Fayol’s 14 Principles of
ManagementManagement
1.1. Division of workDivision of work
2.2. AuthorityAuthority
3.3. DisciplineDiscipline
4.4. Unity of commandUnity of command
5.5. Unity of directionUnity of direction
6.6. Subordination ofSubordination of
individual interestsindividual interests
to the generalto the general
interestinterest
7.7. RemunerationRemuneration
8.8. CentralizationCentralization
9.9. Scalar chainScalar chain
10.10. OrderOrder
11.11. EquityEquity
12.12. Stability of tenureStability of tenure
of personnelof personnel
13.13. InitiativeInitiative
14.14. Esprit de corpsEsprit de corps

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Exhibit 2–4Exhibit 2–4 Weber’s BureaucracyWeber’s Bureaucracy

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Quantitative Approach toQuantitative Approach to
ManagementManagement
• Quantitative ApproachQuantitative Approach
 Evolved from mathematical and statistical methodsEvolved from mathematical and statistical methods
developed to solve WWII military logistics and qualitydeveloped to solve WWII military logistics and quality
control problemscontrol problems
 British and American military had developed techniques usingBritish and American military had developed techniques using
math/stats to plan for attacks, convoy sizes, bombing raids,math/stats to plan for attacks, convoy sizes, bombing raids,
etc…etc…
 Focuses on improving managerial decision making byFocuses on improving managerial decision making by
applying:applying:
 Statistics, optimization models, information models, andStatistics, optimization models, information models, and
computer simulationscomputer simulations
 Computers do most of this work todayComputers do most of this work today

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Exhibit 2–5 What Is Quality Management?Exhibit 2–5 What Is Quality Management?
Quality management ensures that an organization,
product or service is consistent.
Intense focus on the customer
Concern for continual improvement
Process-focused
Improvement in the quality of everything
Accurate measurement
Empowerment of employees

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Understanding OrganizationalUnderstanding Organizational
BehaviorBehavior
• Organizational Behavior (OB)Organizational Behavior (OB)
 People are the MOST important asset of an People are the MOST important asset of an
organization or firm (True or False?)organization or firm (True or False?)

13. Cont….Cont….
• Organizational Behavior Organizational Behavior is a field of study that is a field of study that
investigates the impact that investigates the impact that individuals, groups, individuals, groups,
and structure have on behavior within and structure have on behavior within
organizations organizations for the purpose of applying such for the purpose of applying such
knowledge towards improving an organization's knowledge towards improving an organization's
effectiveness.effectiveness.
• OB is concerned with OB is concerned with “the study of the structure,“the study of the structure,
• functioning and performance of organizations, functioning and performance of organizations,
and the behavior of groups and individuals and the behavior of groups and individuals
within them”within them”. Pugh (1971). Pugh (1971)
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14. Major Contributing DisciplinesMajor Contributing Disciplines
to the field of OBto the field of OB
1. Psychology: 1. Psychology: how individuals behave in response how individuals behave in response
to a stimulus.to a stimulus.
2. Sociology: 2. Sociology: how individuals relate to groups and to how individuals relate to groups and to
each other.each other.
3. Social Psychology: 3. Social Psychology: How individuals and How individuals and
organizations perceive conflict, threats and undergo organizations perceive conflict, threats and undergo
stress.stress.
4. Anthropology: 4. Anthropology: understanding customs traditions understanding customs traditions
and social mores of people since the organization is and social mores of people since the organization is
a microcosm of the larger society.a microcosm of the larger society.
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15. Cont….Cont….
5. Political Science: 5. Political Science: Understanding Power, Authority Understanding Power, Authority
and Corporate Politics.and Corporate Politics.
6. Economics: 6. Economics: Appreciating monetary (wage and Appreciating monetary (wage and
bonus) and non monetary incentives (housing, bonus) and non monetary incentives (housing,
schooling and medical care) to employees so that schooling and medical care) to employees so that
they are motivated to produce more efficiently and they are motivated to produce more efficiently and
effectively.effectively.
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•A series of productivity experiments conductedA series of productivity experiments conducted
at Western Electric from 1924 to 1932.at Western Electric from 1924 to 1932.
•Experimental findingsExperimental findings
Productivity unexpectedly increased under imposedProductivity unexpectedly increased under imposed
adverse working conditions.adverse working conditions.
The effect of incentive plans was less thanThe effect of incentive plans was less than
expected.expected.
•Research conclusionResearch conclusion
Social norms, group standards and attitudes moreSocial norms, group standards and attitudes more
strongly influence individual output and work behaviorstrongly influence individual output and work behavior
than do monetary incentives.than do monetary incentives.
The Hawthorne StudiesThe Hawthorne Studies

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Exhibit 2–7 The Organization as an OpenExhibit 2–7 The Organization as an Open
SystemSystem

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Implications of the SystemsImplications of the Systems
ApproachApproach
• Coordination of the organization’s parts isCoordination of the organization’s parts is
essential for proper functioning of the entireessential for proper functioning of the entire
organization.organization.
• Decisions and actions taken in one area of theDecisions and actions taken in one area of the
organization will have an effect in other areas oforganization will have an effect in other areas of
the organization.the organization.
• Organizations are not self-contained and,Organizations are not self-contained and,
therefore, must adapt to changes in theirtherefore, must adapt to changes in their
external environment.external environment.

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The Contingency ApproachThe Contingency Approach
• Contingency Approach DefinedContingency Approach Defined
 Also sometimes called theAlso sometimes called the situational approach.situational approach.
 There is no one universally applicable set ofThere is no one universally applicable set of
management principles (rules) by which to managemanagement principles (rules) by which to manage
organizations.organizations.
 Organizations are individually different, face differentOrganizations are individually different, face different
situations (contingency variables), and requiresituations (contingency variables), and require
different ways of managing.different ways of managing.

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Exhibit 2–8Exhibit 2–8 Popular Contingency VariablesPopular Contingency Variables
• Organization size
• As size increases, so do the problems of coordination.
• Routineness of task technology
• Routine technologies require organizational structures,
leadership styles, and control systems that differ from
those required by customized or non-routine
technologies.
• Environmental uncertainty
• What works best in a stable and predictable environment
may be totally inappropriate in a rapidly changing and
unpredictable environment.
• Individual differences
• Individuals differ in terms of their desire for growth,
autonomy, tolerance of ambiguity, and expectations.